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I’m Self-Employed. Can I Still Qualify For Mortgage Loan Programs?

I’m Self-Employed. Can I Still Qualify For Mortgage Loan Programs?

For those who are self-employed, obtaining mortgages can prove to be a bit more difficult than for the traditional employee. Lenders want to know you have the financial ability to make payments on time. As an employee with a long track record, you are likely to continue that employment long term, making you less of a risk. However, self-employed individuals can still prove their creditworthiness and secure mortgages.

Tips for Getting a Self-Employed Mortgage

Here are a few things to keep in mind:

  • You'll need to fully document your income. Tax returns from previous years, T & L statements and balance sheets will increase your chances of qualifying.
  • Look for a lender specializing in loans for those who are self-employed. They are more likely to understand that your tax return isn't the only thing that matters.
  • Have a large down payment. Your lender may see you as less of a potential risk when investing cash up front.
  • Have a positive credit score. Pay off your consumer debt. This proves your ability to manage finances and can help you get affordable mortgage rates.

In addition to this, remember that loan programs such as FHA loans are available to individuals who are self-employed. You'll want to do what you can to prove your creditworthiness, including maintaining a solid credit history, having collateral and showing you have the capacity to repay what you borrow. By working with the right lender, you'll also increase your chances of securing a loan.

Contact Midland Mortgage Corporationtoday and ask us how we can help you get a self-employed mortgage.

Posted Sep 08, 2016 by Midland Mortgage Corporation